Number of estates liable for IHT to surpass 37,000 by 2027

The number of estates in the UK subject to inheritance tax (IHT) will exceed 37,000 by 2027, according to analysis by Irwin Mitchell.

A report by the firm’s private client advisory team, based on findings from an HMRC Freedom of Information request, indicated that this could result in a total bill of almost £9bn.

The predictions in the Irwin Mitchell report are based on previously unseen statistics from the Government which cover 177,000 IHT estates across all 121 UK postcodes.

The forecasts have been adjusted to account for changes announced in Rachel Reeves’ Budget last year, which saw the current freeze to IHT thresholds extended until 2030 and changes to business and agricultural property relief from April 2026.

Irwin Mitchell’s report stated that the total amount of IHT in Greater London is predicted to grow by 54% between 2022 and 2027, increasing to £2.6bn a year, and the average IHT bill in Greater London is expected to be £275,000 by 2026/27, and even higher in Inner London (£340,000).

Leeds, Manchester, and Birmingham will also see double-digit increases in the percentage of estates liable for IHT.

National head of Irwin Mitchell’s private client advisory team, Andrea Jones, said: “The increase in IHT liabilities across the UK is a significant concern for many families.

“Our findings highlight the urgent need for individuals to seek professional advice to navigate these changes and plan effectively for the future.

“With the threshold freeze extended until 2030 and changes to business and agricultural property relief from April 2026, it’s more important than ever to understand the implications and take proactive steps to mitigate the impact on estates.”



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Is 2025 the year of the remortgage?
An estimated 1.8 million fixed rate mortgage deals are due to expire in 2025, 400,000 more than in 2024. This surge in remortgaging presents a critical opportunity for mortgage brokers to offer essential advice and financial support to homeowners across the UK, ensuring they transition smoothly to new deals amid stabilising interest rates and heightened affordability checks.


The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.

The UK housing market in 2024
The performance of the UK housing market in 2024 has largely exceeded many people's expectations, although challenges remain for first-time buyers due to house prices increasing and a testing rental market for many. Regional disparities, such as the North-South divide, also continue to influence housing accessibility and affordability for many buyers in pockets of the country.